TechFlow reports that South Korea's ruling party has begun pushing to delay the implementation of cryptocurrency capital gains tax by another two years, as part of its campaign pledge ahead of the general election scheduled for April.
According to local media The Herald Business Daily, the party believes taxation on cryptocurrencies is only feasible after establishing a foundational regulatory framework.
A representative of the party also emphasized that the tax base has not yet been established. The official explained that, unlike securities exchanges, no entity is currently authorized to oversee cryptocurrency transactions. The party estimates it will take two years to establish such a system. The ruling party official further stated that taxation should protect the nation's property and livelihoods, noting that certain government sectors have so far "overlooked" the cryptocurrency market.
The implementation of this tax has been postponed multiple times before. The original plan was to introduce the tax in 2022. However, lawmakers reached an agreement to delay enforcement until 2023, citing flaws in the information collection procedures carried out by the National Tax Service (NTS). In July 2022, government officials announced another two-year postponement of the 20% cryptocurrency capital gains tax. At that time, lawmakers pointed to the stagnant market conditions in the cryptocurrency sector and the need for more time to prepare investor protection measures.
